Franchise Advice
e coin sides talks about franchising from the point of view of both parties The franchisee’s perspective
Many experts agree that investing in a well established, tried, tested and proven franchise brand can provide a prospective franchisee with a less risky route into self- employment. They receive initial training and ongoing support from the franchisor as well as benefi cial supplier arrangements and brand recognition which they wouldn’t get if they were setting up their own independent business from scratch. Investing in an established franchise will as far as possible reduce the inherent risks in setting up a new business, although there are no guarantees of success. It is important to evaluate the strength of the brand and the long term viability of the franchise. Unproven systems that have not operated a successful pilot scheme carry a signifi cantly greater risk to the investor. There is no substitute for thorough
research and investors should leave no stone unturned in assessing their options. There are hundreds of business opportunities to choose from, however not all franchises offer the same level of training and support. There are inevitably going to be lifestyle changes when people start their own business, which could include working longer hours, added pressure and fi nancial uncertainty, particularly in the early years.
Running any business – whether it’s a franchise or not – requires self-motivation and as rewarding as it can be, it can also be challenging.
Following the initial training programme the franchisee needs to put into practice what they have learned. It is at this stage that they need the most support from the franchisor and the Head Offi ce team. If they follow the advice and guidance provided, they should be well positioned to build a successful business over time. Once the franchisee has survived the start-up stage, confi dence should begin to grow as they establish their customer base. They will gradually become less reliant upon the franchisor for guidance on how to operate the business, although they have the comfort and security of knowing that advice is just a phone call away. Sometimes at this point franchisees may begin to resent paying the management services fees to the franchisor. It should not be forgotten, however, that staying in business to this stage – and within a relative short time-frame – would simply not be possible without the operating systems and backing of the franchisor. Franchising is a partnership between the franchisor and franchisee. While it isn’t necessarily an equal partnership,
“It is important to evaluate the strength of the brand and the long-term viability of the franchise”
both parties need to be successful for the partnership to work. The franchisor directly benefi ts from the success of their franchisees through fee income and it is therefore their responsibility to provide the best possible training and support to their network.
Whilst franchising may not necessarily be the right choice for everyone, a proven franchise model can provide a business with a supportive framework, access to quality advice and reduced risk – an attractive combinastion for potential business owners.
Richard Holden
Richard Holden is head of franchising for Lloyds TSB Commercial. For more information email richard.j.holden@
lloydstsb.co.uk
February 2012 |
Businessfranchise.com | 21
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64 |
Page 65 |
Page 66 |
Page 67 |
Page 68 |
Page 69 |
Page 70 |
Page 71 |
Page 72 |
Page 73 |
Page 74 |
Page 75 |
Page 76 |
Page 77 |
Page 78 |
Page 79 |
Page 80 |
Page 81 |
Page 82 |
Page 83 |
Page 84 |
Page 85 |
Page 86 |
Page 87 |
Page 88 |
Page 89 |
Page 90 |
Page 91 |
Page 92